Investing.com - The pound remained steady close to a one-week high against the U.S. dollar on Tuesday, after official data showed that U.K. consumer inflation fell to an almost three-year low in September.
GBP/USD hit 1.6109 during European morning trade, the pair’s highest since October 8; the pair subsequently consolidated at 1.6095, gaining 0.16%.
Cable was likely to find support at 1.6019, Monday’s low and near-term resistance at 1.6141, the high of October 8.
The Office for National Statistics said the annualized rate of consumer price inflation dropped to 2.2% in September, the lowest since November 2009, down from 2.5% in August.
The slowdown in inflation will give the Bank of England more leeway to ease monetary policy further, in order to bolster growth in the faltering economy.
Separate data showed that factory gate inflation rose 2.5% on the year, compared to forecasts for a 2.2% increase.
The ONS also said that house prices rose 1.8% on the year in August, after a 2% increase the previous month.
The pound remained supported after Monday’s better-than-forecast U.S. retail sales data bolstered risk appetite.
Meanwhile, investors were looking ahead to Thursday’s European Union summit amid ongoing speculation over whether Spain will formally request a bailout from its euro zone partners in the coming weeks. A bailout request would trigger a bond buying program by the European Central Bank, aimed at lowering peripheral euro zone borrowing costs.
Sterling was lower against the euro, with EUR/GBP up 0.26% to 0.8078.
Later in the day, the U.S. was to release government data on consumer price inflation and industrial production.
GBP/USD hit 1.6109 during European morning trade, the pair’s highest since October 8; the pair subsequently consolidated at 1.6095, gaining 0.16%.
Cable was likely to find support at 1.6019, Monday’s low and near-term resistance at 1.6141, the high of October 8.
The Office for National Statistics said the annualized rate of consumer price inflation dropped to 2.2% in September, the lowest since November 2009, down from 2.5% in August.
The slowdown in inflation will give the Bank of England more leeway to ease monetary policy further, in order to bolster growth in the faltering economy.
Separate data showed that factory gate inflation rose 2.5% on the year, compared to forecasts for a 2.2% increase.
The ONS also said that house prices rose 1.8% on the year in August, after a 2% increase the previous month.
The pound remained supported after Monday’s better-than-forecast U.S. retail sales data bolstered risk appetite.
Meanwhile, investors were looking ahead to Thursday’s European Union summit amid ongoing speculation over whether Spain will formally request a bailout from its euro zone partners in the coming weeks. A bailout request would trigger a bond buying program by the European Central Bank, aimed at lowering peripheral euro zone borrowing costs.
Sterling was lower against the euro, with EUR/GBP up 0.26% to 0.8078.
Later in the day, the U.S. was to release government data on consumer price inflation and industrial production.